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As part of its ongoing expansion plan, Target recently leased space for one of its small-footprint store designs. The lease is for a 15-year term,
As part of its ongoing expansion plan, Target recently leased space for one of its small-footprint store designs. The lease is for a 15-year term, which is extendable for additional 5-year periods. Monthly payments will be $45,000. Targets weighted-average cost of capital (and therefore its discount rate) is 10%. Show calculations for the present value of Targets obligation for the minimum lease period of 15 years in excel
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